The Monetary Authority of Singapore (MAS) has imposed a civil penalty of $200,000 on Mr Lim Soon Fang for not disclosing changes in, and providing false information regarding his shareholding in Asia-Pacific Strategic Investments Limited (ASIL).
Two Individuals Convicted of Fraud In the Trading of Futures Contracts and Furnishing False Statements to SGX-DT
Singapore, 7 October 2019…Mr Jimmy Ng Kian Bin (Mr Jimmy Ng) and Mr Erik Ng Song Hann (Mr Erik Ng) were today convicted and sentenced to 16 weeks’ and 4 weeks’ imprisonment respectively for fraud and dishonest conduct in relation to the trading of futures contracts. Their convictions were a result of a joint investigation conducted by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department of the Singapore Police Force. The case was referred to MAS by Singapore Exchange Derivatives Trading Limited (SGX-DT).
2 Mr Jimmy Ng was charged under section 210(a) of the Securities and Futures Act (SFA) for employing a scheme to defraud others in the trading of futures contracts and under section 330(1)(a) of the SFA for furnishing a false statement to SGX-DT
3 Mr Erik Ng was charged under section 210(a) of the SFA for employing a scheme to defraud others in the trading of futures contracts and under section 330(1)(a) of the SFA for furnishing a false statement to SGX-DT. He pleaded guilty and was convicted on two charges, with two remaining charges taken into consideration for the purpose of sentencing. Mr Erik Ng was sentenced to 4 weeks’ imprisonment.
4 The court proceedings against a third individual in the case, Mr Joseph Chai Ming Leong
5 Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said, “The convictions of these two individuals show MAS’ resolve to pursue individuals who engage in fraudulent conduct in our capital markets. And we will take stern actions to bring them to task.”
Background to the case
6 Mr Jimmy Ng and Mr Erik Ng were traders of Joerik Financial Pte Ltd (Joerik), a proprietary trading company and an SGX-DT trading member. At the material time, Mr Erik Ng and Mr Chai were directors of Joerik.
7 On 24 and 27 July 2015, Mr Jimmy Ng repeatedly entered and deleted a series of buy and sell orders for SGX MSCI Singapore Index July 2015 Futures Contracts (SGN15)
8 On or around 28 July 2015, in response to a query from SGX-DT on Mr Jimmy Ng’s trading activities in SGN15, Mr Jimmy Ng conspired with Mr Erik Ng and Mr Chai to furnish a false reply to SGX-DT. The reply claimed that Mr Jimmy Ng was conducting algorithm trading in SGN15, and that he had intended to fill the fictitious buy and sell orders. Mr Jimmy Ng had thereby furnished a false statement to SGX-DT with the intent to deceive it about his trading activites in SGN15.
9 On 29 August 2016, Mr Erik Ng traded in SGX MSCI Taiwan Index August 2016 Futures Contracts (TWQ16)
10 On or around 1 September 2016, in response to a query from SGX-DT on Mr Erik Ng’s trading activites in TWQ16, Mr Erik Ng conspired with Mr Chai to furnish a false reply to SGX-DT. The reply claimed that Mr Erik Ng was engaged in arbitrage trading between the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) futures contracts and the mini-TAIEX futures contracts. Mr Erik Ng had thereby furnished a false statement to SGX-DT with the intent to deceive it about his trading activites in TWQ16.
Notes to Editor
(A) Section 210(a) of the SFA (Cap 289) at the time of the offences
Under section 210(a) of the SFA, no person shall, directly or indirectly, in connection with any transaction involving trading in a futures contract or leveraged foreign exchange trading, employ any device, scheme or artifice to defraud.
(B) Section 330 (1)(a) of the SFA (Cap 289) at the time of the offences
Under section 330(1)(a) of the SFA, any person who, with intent to deceive, makes or furnishes, or knowingly and wilfully authorises or permits the making or furnishing of, any false or misleading statement or report to any securities exchange, futures exchange, licensed trade repository, approved clearing house or recognised clearing house or any officers thereof relating to dealing in securities, trading in futures contracts, foreign exchange trading or leveraged foreign exchange trading, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both.
(C) Section 109 of the Penal Code (Cap 224)
Section 109 of the Penal Code provides that whoever abets any offence shall, if the act abetted is committed in consequence of the abetment, and no express provision is made by the Penal Code for the punishment of such abetment, be punished with the punishment provided for the offence.